Hello WBN.

I'm not sure how HMRC would be aware that you're in a trust deed. They may know via your tax code, or it may be a standard check before they send out a payment.

As they're aware you're in a trust deed they'll be aware that this money will almost certainly fall within a windfall clause. As such sending it to your trustee would seem appropriate.

Some lenders do the same checks before making PPI claim payments, and would also pay directly to a trust deed firm in such circumstances.

Hi, how would they know from my tax code? My employer doesnt know of my TD. It is appropriate that my Trustee knows and decides on the money but losing my right to decide how thats communicated and received is surely not right?

Hi WBN.

HMRC issue tax codes. I'm not sure of the detail, but understand a code may sometimes change post insolvency.

More likely perhaps is that they consult the public insolvency registers before issuing payments.

I'm not really sure whether your rights have been infringed. As mentioned before, if you made a PPI claim they'd probably follow the same process before making a payout to you or your trustee.

You could query it with HMRC for the official explanation if you wanted?

Hi TDA

The alteration of tax codes is more akin to IVA's, as opposed to Trust Deeds.

Regarding the repayment, a lot depends on what period it relates to, but most IP's I'm sure would reach a compromise agreement.

Mark

Not sure how HMRC find out but they do. I got a letter from them last year, saying that as I had been 'declared bankrupt' I would have to fill in a paper tax return. I phoned them and explained that I was not bankrupt, but in a trust deed, and was told that as far as tax is concerned it is the same thing

Hi fcwalker.

Are HMRC a creditor of yours?

No

Same terminology fcwalker. HMRC said that since I was 'bankrupt' they would be sending the tax rebate to my Trustee. In respect of the rebate amount, if it does all end up with the Trustee, it totals £3700, stupid question but what happens to it? Do the creditors get more? Does my monthly payment get less?

Hi WBN.

If it is retained it will swell the funds available to your creditors.

Your monthly repayment will remain based upon an affordability calculation.